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First reason is the state of the economy and almost total lack of traditional funding. Everyone knows the last 18 months have been some of the toughest on record of business owners. Banks have tightened up their lending activities in response, but to make matters worse the banks are now left with devastated portfolios of commercial loans.
Merchant Cash Advances are filling a huge void in the market place by supplying desperately needed capital to marketplace. If you are in the business of offering MCAs, there has never been a better time to build a portfolio of clients.
A second reason has been the maturation of the MCA-industry. Now the MCA product is evolving to offer various products that fit certain business-types or situations. A good example of this has been the fixed-repayment schedule. At AFS you can choose between paying a contract as a split percentage of credit card sales or a fixed weekly or daily payment. Another product is the "starter advance" where clients are offered smaller funding amounts with quick repayment times to limit risk to the funding company. This allows clients to build lender history and graduate up to more financing and improved terms. AFS launched its FAST CASH product in this niche in August of 2009.
I firmly believe that the combination above will last for at least three more years and continue to give merchants access to capital and provide agents with strong customer service skills a chance to develop a great clientele list.
